Goldman Sachs Joins Wall Street Competition in Raising Junior Banker Pay

Aug 4, 2021

Goldman Sachs joins Wall Street competition Liquidity provider news

Wall Street has a new minimum wage.

Goldman Sachs is raising the salaries of its junior bankers, the last big Wall Street business to do so in a year marked by record deal-making activity and strong rivalry for employees.

According to a source familiar with the adjustments, first-year analysts – the most junior of investment bankers who are generally recent college grads — will be paid a $110,000 annual base pay, up from $85,000. Second-year analysts will receive $125,000, up from $95,000, while first-year associates will be paid $150,000, according to the source.

A new salary standart

The move sets a new salary benchmark for major Wall Street investment banking programs. In March, the industry was roiled after a Goldman Sachs internal study revealed excessive hours and burnout as a result of the deal boom; competitors quickly capitalized on the uproar by announcing rewards such as $20,000 special bonuses and Peloton bicycles.

However, Goldman Sachs, which has one of the most recognizable brands in investment banking, has avoided the boosting compensation trend.

Instead, CEO David Solomon assured staff that the company was recruiting more bankers, automating mundane jobs, and recommitting to a "Saturday rule" that would provide workers with a weekend break. According to the Financial Times, the bank had argued internally whether to increase fixed wages rather than merely increase bonuses.

Meanwhile, Morgan Stanley, JPMorgan Chase, Citigroup, and Barclays have all increased first-year analyst compensation to $100,000 from approximately $85,000. This came on the heels of raises from Bank of America and other companies earlier this year.

The booming industry

The industry has the financial means to be generous: the industry of mergers and acquisitions consulting has been booming this year, with worldwide transaction activity surpassing $2 trillion in a record first half. Investment banks get paid lucrative fees at the close of deals, and larger deals result in more dollars for compensation pools.

When it comes to salary and benefits, banks frequently follow each other in the hopes of attracting enough brilliant employees to build a pipeline of seasoned dealmakers.

In the end, Goldman not only equaled but significantly exceeded its competitors' wages. According to a Wall Street recruiter who did not want to be identified, the move could force competitors to match the bank's $110,000 salary for first-year bankers.

According to the person, junior Goldman bankers will learn the size of their bonuses later this month. As a banker progresses through the ranks, the percentage of pay allocated to so-called variable compensation increases. During a recent earnings conference call, Solomon stated,

“We have always paid extremely competitively. We've always operated on a pay-for-performance basis.”

Subscribe Our Newsletter

Zuckerberg and Facebook Refuse To Give Up On the Metaverse

Milena

Zuckerberg and Facebook Refuse To Give Up On the Metaverse

The social media giant maintains the metaverse as a top priority despite mounting losses.

Companies
KAVA Decentralized AI

Constantine

Kava Introduces the Largest Decentralized AI Model: Why Does it Matter?

Kava’s revolutionary decentralized AI model is setting a new benchmark for innovation at the intersection of cryptocurrency and artificial intelligence.

AI
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Oliver

How to Provide Liquidity to Cryptocurrency Exchange?
Cryptocurrency is already changing the face of trading. Due to the greater demand for crypto assets, new exchanges are hitting the market with promised convenience and features. However, every cryptocurrency exchange requires liquidity.

discover
The Best Crypto Wallets of 2022: Top 5 Picks

Alexander

The Best Crypto Wallets of 2022: Top 5 Picks

2022 was a tough year for the crypto industry as the crypto winter and bear markets took their toll. After the collapse of huge and well-known crypto projects like the FTX exchange and the subsequent distrust of centralized exchanges, investors looked for alternative ways to store and manage their crypto assets.

Blockchain
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?

    Constantine

    AI in Finance: A Game-Changing Trend Shaping the Industry

    AI in Finance

    Hazem

    5 Ways to Make Money with ChatGPT and Build Your Wealth

    Make Money with ChatGPT

    Constantine

    Top AI Companies to Invest in April 2025

    Top AI Companies to Invest in March 2025

    DeepSeek vs ChatGPT: Which AI Technology is Better For You?

    DeepSeek vs ChatGPT: Feature-by-Feature AI Tool Comparison

    Constantine

    Top Solana Meme Coins in 2025: Best Presales and Where to Buy

    Solana Meme Coins 2025

    Alexander

    How Renewable Energy Stocks Can Supercharge Your Portfolio

    How Renewable Energy Stocks Supercharge Your Portfolio

    SEC Crypto Regulations: What Financial Advisors Need to Know

    SEC Crypto Regulations: Insights for Financial Advisors
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.